When it comes to great NFT projects, we consider talented creators, innovative mechanics, and vibrant communities as important factors.
What are the characteristics of bad NFT projects?
Below, I’ve listed thirteen red flags you need to keep in mind as you explore new NFT projects, they range from issues of negligence to outright manipulation, let’s protect our wallets.
Red flag 1: Untenable mint prices
There is a lot of room for what is a “reasonable” NFT mint price, and there is no single right answer here. However, if a new team charges significantly more than its “predecessors” or similar projects, it’s a sign that they may be more concerned with taking your ETH than anything else.
Red flag 2: Suspicious social media activity
An NFT project party suddenly sends you a message to direct your attention to an upcoming NFT sale, like you saw an advertising tweet about a few hours ago. Now you click on the project’s profile and find that (1) none of the people you follow follow the project, and (2) this new project has a large (unusual) number of followers. These are red flags! Good projects don’t get personal attention through private messages or using Web2 ads, they have organic traffic and don’t need to buy followers.
Red flag 3: Deliberately maintain floor prices
If you see project leaders discussing or trying to maintain a floor price for an NFT, you should leave the place, they are just running a financial plan with little real interest in cultural values or community. This insincerity will affect all future troubles they have, so be careful.
Red flag 4: Abuse of Discord
One worrying situation is that the NFT team chose to ban his Discord account when a community member asked a legitimate question. You want to see projects that are inclusive and forthright, rather than aggressive and secretive. There is no good reason for the team to abuse their moderation duties.
Red flag 5: No auditing
Audit reports from security companies are not perfect, but they do provide some basic security checks. If you’re in Web3, you want to use audited DeFi and NFT projects, because unaudited infrastructure is easier to attack or exploit. The problem is that every audit firm has been inundated with demand lately, and some new NFT projects don’t want to wait forever, so take the opportunity by launching unaudited infrastructure. We, however, should treat such projects with appropriate caution.
Red flag 6: Bad design
A poorly designed project can lead to bugs, inefficient gas, exploitable mints, and more. Measuring bad code etc. is difficult for newbies and a lot of non-technical experts, so following those who know what to do and learning from their judgment will be key.
Red flag 7: Low-quality art
If you come across an art project that looks like it was conceived and completed within an hour by the Fiverr content platform, chances are it’s something like that. So, if the NFT team itself doesn’t take their content seriously, why should you? Remember, there’s a huge gulf between tasteful/charming/funny/weird minimalism and kitsch trash. You can judge, but in my experience, projects in this range tend to be bad.
Red flag 8: Selling whitelists
One of the new things I’ve seen recently is that NFT teams are selling their NFT minting whitelist, wow! It’s just a cash grab, plain and simple, and I personally don’t see any justification for it.
Red flag 9: Too optimistic
Did the creators of the new NFT collectibles say their work is “blue chip quality” and will be the next Bored Ape Yacht Club? Is the project’s roadmap a metaphor for going to the moon, or does it claim something outlandish, like claiming it will be the first true lunar NFT marketplace? Avoid pure rhetoric.
Red flag 10: Completely anonymous teams
There is nothing inherently wrong with having a completely anonymous team, people have a right to privacy and in many cases the quality of the project and codebase etc will speak for itself. However, in the worst case, completely anonymous teams can cause serious damage, such as disrupting liquidity, and then have little liability.
Red flag 11: Lack of track record
If an NFT project team lacks seasoned NFT veterans, the project is more likely to be eliminated.
Red flag 12: Failed to pass Etherscan verification
Verifying your code with Etherscan assures the public that it is working correctly on Ethereum. The use of unverified smart contracts means that you have no basic performance guarantee, so this is something you must pay attention to during your NFT activities. For example, you can see how the Cool Pets smart contract is verified by its selected state. Be careful with items that don’t have a similar checkmark.
Red flag 13: Bad ownership distribution
Suppose a 10,000 total PFP avatar project catches your attention, but when you look at its OpenSea collection page and notice that the ownership of the project is distributed among hundreds of addresses, then you must be careful, This means that these individuals can have a significant impact on this collectibles market.
Some of the red flags described above can have a high impact, such as misuse of Discord. And some other signals, like completely anonymous teams, aren’t always important, but at least be noticed. Get into the habit of spotting these red flags so you can be smarter about your NFT campaigns.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/nft-pit-avoidance-guide-13-red-flags-to-be-wary-of-junk-projects/
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